Better, Faster, Cheaper NPD Peter Hoyland

The manufacturing world has doubled it’s productivity in the last 20 years 2 Bureau of Labor Statistics

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Will a better process deliver better products? 4 Better Choices Better Use of Expertise Better Products

Will our NPD portfolio deliver our growth targets?

Are we looking after all of our key markets?

Are we actioning our strategic decisions?

The hard way to find out…

We need a system that answers these questions with zero effort 10

We need a system that answers these questions with zero effort

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What can be done to make NPD Quicker? 14 The Queue The Work The Rework

Queuing is a question of capacity 15 Waiting time / Average Process Leadtime Percentage of Capacity Used 20% 40% 60% 80% 100% x 5x Single Arrivals Project Delays due to Queuing

We need a sensible way to calculate loading 16

We need a sensible way to calculate loading 17

The law of large numbers

19 20% 40% 60% 80% 100% +60% uncertainty from each project + 8% uncertainty from 100 projects So rough cut planning at a project level is more than adequate for overall capacity planning Each dot represents the average headcount required by 100 projects Where each project requires somewhere between 2 and 8 people

We need a sensible way to calculate loading… effortlessly 20 Standard project types have pre-defined ‘rough-cut’ resource profiles for critical resource areas Forecast Resource Requirements included just by defining project type and Gate Dates What-if analysis by switching individual projects on and off

But queuing is always better than working slowly Work Time More projects done slower Most are later More WIP (Project Inventory = shaded area) Project A Project B Project C ✗ ✗ Work Time Fewer projects done faster Non are later Less WIP (Project Inventory = shaded areas) Project AProject BProject C ✓ ✓ 21

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Business Case Marketing Supply Chain Sales Technical Design Business Case Marketing Supply Chain Sales Technical Design Increased Risk – Leads to rework NPD Equivalent of Waste Time and Money Lack of co-ordination generates re-work 23

And a system that supports project managers to synchronise resources … effortlessly

The expertise is in here

Expert system retains project knowledge Better use of expertise means capturing and building that know-how into the process 26

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Return on Investment from R&D Average Consumer Goods and Food Telecommunications, IT, Media Logistics & Services Public and Professional Services Financial Institutions Electrical Eng. & Electronics Chemicals & Resources Engineering & Manufacturing Pharmaceuticals Construction & Equipment Aerospace Utilities Share of total sales generated by new products / Share of total sales spent on R&D Source: Arthur D. Little Innovation Excellence Study 2005  % hours spent on cancelled projects  Delays due to pilot plant availability  Delays due to Marketing not signing off results  No of Patent applications per quarter  % of times Gates are late.. 28

We need easy but effective Continuous Improvement 29

Bottom up measures Continuous Improvement Measures are automatically generated. 30

Thank You See the Innovator System on